A profit-maximizing firm decides to shut- down production in the short-run. Its total fixed cost of production is $100, i.e., TFC = $100. If the firm had produced a positive quantity which of the following would have been true? A The firm's revenues would have been lower than $100. B The firm's total variable cost must be lower than $100. C The firm's losses would have been higher than $100. The firm's total variable cost would D have been higher than $100. 1/20 Submit

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Perefect Competition
Section: Chapter Questions
Problem 5SQP
Question
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A profit-maximizing firm decides to shut-
down production in the short-run. Its total
fixed cost of production is $100, i.e., TFC =
$100.
If the firm had produced a positive quantity
which of the following would have been true?
A
The firm's revenues would have been
lower than $100.
B
The firm's total variable cost must be
lower than $100.
C
The firm's losses would have been
higher than $100.
The firm's total variable cost would
D
have been higher than $100.
1/20
Submit
Transcribed Image Text:A profit-maximizing firm decides to shut- down production in the short-run. Its total fixed cost of production is $100, i.e., TFC = $100. If the firm had produced a positive quantity which of the following would have been true? A The firm's revenues would have been lower than $100. B The firm's total variable cost must be lower than $100. C The firm's losses would have been higher than $100. The firm's total variable cost would D have been higher than $100. 1/20 Submit
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